Welcome to the Total Mortgage Current Mortgage Rates Blog. There’s some economic data out today, but first, your daily mortgage rate forecast/advice.
Where are mortgage rates going?
French election pushes mortgage rates higher
The first round of the French presidential election took place yesterday, with centrist candidate Emmanuel Macron coming out on top, followed by far-right candidate Marine Le Pen. The final run-off will take place on May 7th. Global markets are breathing a collective sigh of relief, as Macron is largely anticipated to defeat the anti-EU Le Pen in the head to head race.
Click here to get today’s latest mortgage rates (Apr. 24, 2017).It’s not a guarantee, but it’s enough of a reason for investors to move out of government bonds and into the stock market. All of the major U.S. market indices are trading higher this morning and the yield on the U.S. 10-year Treasury note–the best market indicator of where mortgage rates are headed–has moved up about five basis points (one basis point = 0.01) from where it closed on Friday. That means that mortgage rates are on the rise this morning.
Biggest events of the week
There’s quite a bit of economic data out this week, as well as several speaking engagements from various Fed officials, however, here are the events investors will be paying the closest attention to:
- Trump’s Tax Plan/Border Wall
- President Trump stated on Friday that he plans to reveal details about his tax plan on Wednesday. It’s nowhere near a complete proposal but depending on what he says we could see the markets react. This is especially true if significant corporate tax cuts get a clear push. A completed proposal isn’t expected until June.
- Of course, there is also the chance that we could see a government shutdown soon if the debate about the border wall isn’t resolved. Most Republicans have signaled that they would rather not see things comes to a standstill, but Trump doesn’t seem to share that sentiment. He’s ready and willing to go to battle over funding his border wall, as are the opposing Democrats. How they will reach a compromise is a question that doesn’t have a clear answer at the moment.
- Durable Goods
- The Durable Goods report on Thursday is expected to show moderate growth with economists predicting a 1.1% increase in New Orders, and a 0.2% increase for Core capital goods. This would be the third straight month of growth for this report, and would likely nudge mortgage rates higher.
- Q1 GDP
- Friday morning we get the first estimate for Q1 GDP, and it’s expected to be a weak report with the Q/Q change at 1.1%. With many investors already anticipating a poor report, it’s uncertain what type of impact will be seen on Friday, but investors will no doubt be tuning in for the official reading.
What does this mean for me?
Lock in a rate today
Mortgage rates are moving higher today, but are still not far off from 2017 lows. There’s a very busy week ahead of us, with the potential for rates to continue to rise. The smart decision for anyone looking to lock in a rate on a refinance or purchase would be to take action sooner rather than later.
It only takes a few minutes to fill out some information and get a personalized rate quote on our website, or to make a quick phone call to one of our experienced mortgage specialists to get started.
Today’s economic data:
Fedspeak
Minneapolis Fed President Neel Kashkari will speak at 11:30 and 3:15pm today.
Dallas Fed Mfg Survey
The Dallas Fed mfg survey’s General Activity Index came in just under expectations at 16.8.
Notable events this week:
Monday:
- Fedspeak
- Dallas Fed Mfg Survey
Tuesday:
- FHFA House Price Index
- S&P Corelogic Case-Shiller HPI
- New Home Sales
- Consumer Confidence
- Richmond Fed Mfg Survey
Wednesday:
- EIA Petroleum Status Report
Thursday:
- Durable Goods Orders
- International Trade in Goods
- Jobless Claims
- Pending Home Sales
- EIA Natural Gas Report
- Kansas City Fed Mfg Index
Friday:
- GDP
- Employment Cost Index
- Chicago PMI
- Consumer Sentiment
- Fedspeak
from Total Mortgage Underwritings Blog http://ift.tt/2p9RpNw
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